Brokers Set Expectations for Starbucks Co.’s Q3 2024 Earnings (NASDAQ:SBUX)

Starbucks Co. (NASDAQ:SBUX) – Stock analysts at William Blair reduced their Q3 2024 earnings per share estimates for Starbucks in a research report issued on Tuesday, April 16th. William Blair analyst S. Zackfia now anticipates that the coffee company will post earnings per share of $1.11 for the quarter, down from their previous estimate of $1.15. The consensus estimate for Starbucks’ current full-year earnings is $4.03 per share.

Starbucks (NASDAQ:SBUX) last announced its earnings results on Wednesday, January 31st. The coffee company reported $0.90 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.92 by ($0.02). Starbucks had a net margin of 11.70% and a negative return on equity of 50.76%. The business had revenue of $9.43 billion for the quarter, compared to analysts’ expectations of $9.60 billion. During the same quarter last year, the firm earned $0.75 EPS. The firm’s quarterly revenue was up 8.2% on a year-over-year basis.

SBUX has been the subject of several other research reports. BTIG Research dropped their target price on Starbucks from $125.00 to $115.00 and set a “buy” rating for the company in a research report on Wednesday, January 31st. Robert W. Baird decreased their price target on shares of Starbucks from $106.00 to $100.00 and set a “neutral” rating for the company in a research note on Monday, March 18th. JPMorgan Chase & Co. decreased their price target on shares of Starbucks from $107.00 to $100.00 and set an “overweight” rating for the company in a research note on Tuesday, March 19th. Morgan Stanley decreased their price target on shares of Starbucks from $120.00 to $115.00 and set an “overweight” rating for the company in a research note on Friday, April 12th. Finally, Stifel Nicolaus decreased their price target on shares of Starbucks from $102.00 to $90.00 and set a “hold” rating for the company in a research note on Thursday, April 11th. Thirteen research analysts have rated the stock with a hold rating and nine have issued a buy rating to the stock. According to data from MarketBeat.com, Starbucks has a consensus rating of “Hold” and a consensus price target of $107.43.

Starbucks Price Performance

Shares of NASDAQ:SBUX opened at $87.15 on Friday. Starbucks has a 1 year low of $84.29 and a 1 year high of $115.48. The business has a 50 day simple moving average of $91.14 and a two-hundred day simple moving average of $94.42. The firm has a market capitalization of $98.67 billion, a PE ratio of 23.30, a price-to-earnings-growth ratio of 1.39 and a beta of 0.97.

Institutional Investors Weigh In On Starbucks

Large investors have recently made changes to their positions in the stock. Quilter Plc purchased a new stake in shares of Starbucks during the first quarter valued at $208,530,000. Freedom Wealth Alliance LLC purchased a new stake in Starbucks in the fourth quarter valued at $26,000. Scarborough Advisors LLC purchased a new stake in Starbucks in the fourth quarter valued at $26,000. Vima LLC purchased a new stake in Starbucks in the fourth quarter valued at $26,000. Finally, DSM Capital Partners LLC purchased a new stake in Starbucks in the fourth quarter valued at $27,000. 72.29% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other news, CEO Michael Aaron Conway sold 3,250 shares of the business’s stock in a transaction on Monday, April 15th. The shares were sold at an average price of $85.39, for a total transaction of $277,517.50. Following the sale, the chief executive officer now directly owns 81,199 shares of the company’s stock, valued at $6,933,582.61. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Over the last three months, insiders have sold 7,250 shares of company stock valued at $653,183. 1.98% of the stock is currently owned by insiders.

Starbucks Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 31st. Shareholders of record on Friday, May 17th will be issued a $0.57 dividend. This represents a $2.28 annualized dividend and a yield of 2.62%. The ex-dividend date of this dividend is Thursday, May 16th. Starbucks’s dividend payout ratio is currently 60.96%.

About Starbucks

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items.